Billet buyers in Turkey have seen considerably lower import prices from China this week, following lower domestic demand and insufficient production cuts, combined with iron ore and rebar prices in China being currently at their five-year low. While several bookings at higher levels had already taken place in the previous week, Turkish importers now prefer to wait and see. Rebar exports from Turkey have been rather dull lately and non-supportive of lively billet or scrap purchases, while import scrap prices themselves are still at around $347/mt CFR maximum, lacking momentum to climb further.
Currently, import billet offers from China for August shipments are at $455-457/mt and up to $460/mt CFR, down $10/mt last Friday. Last week, according to sources, there were two deals to the Izmir region at $466-467/mt CFR for a total of 50,000 mt, and the same level is reported in a deal to the Izmir region for a sizeable volume.
No indications for billet from Indonesia have been reported in the market as the supplier seems to be currently sold out for July shipments, having sold large lots last week at $428-430/mt FOB to Vietnam, Malaysia and, most probably, to Saudi Arabia.
As for Malaysia, there has been a rumor about a deal for 165 mm billet at $470-475/mt CFR Turkey, but the information has not been confirmed by the time of publication. A fresh cargo of 150 mm billet, according to sources, is now on offer at $490-495/mt CFR levels and for July shipments.
Russian billet sellers have also cut prices, even though the exchange rate is still extremely unfavourable for exporters. Some mills and traders have decided to stay away from the market, but some large mills have had no other option but to cut prices to remain competitive as Turkey is among the few markets for Russian billets. Offers from a large Russian mill have been heard at $450-455/mt CFR Turkish Black Sea region this week, translating to $430-435/mt FOB Black Sea. Billets from Donbass, the Ukrainian territory currently occupied by Russia, have been less competitive recently with new offers awaited at $455-460/mt CFR. The US dollar/rouble exchange rate is standing below the $1 = RUB 80 mark since May 21 and has been at $1 = RUB 79.47/mt today, May 28. The SteelOrbis reference price has settled at $430-437/mt FOB, with the midpoint at $433.5/mt FOB Black Sea, down from $440/mt FOB last week.